The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 64 on December 31, 20Y2.

Required:

Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

You have been asked to carry out research about how Australians use their credit cards. How would you store or classify the information you gather? You can choose more than one option. Why would you organise information in this way? 100–120 words

Here are the questions:

compute the following ratio, compare it to the industry average, and comment. Compute the current ratio.

compute the following ratio, compare it to the industry average, and comment. Compute the quick ratio.

compute the following ratio, compare it to the industry average, and comment. Compute days in inventory.

compute the following ratio, compare it to the industry average, and comment. Compute the ROE using the DuPont Model.

compute the following ratio, compare it to the industry average, and comment. Compute days outstanding in accounts.

compute the following ratio, compare it to the industry average, and comment. Compute the gross margin.

compute the following ratio, compare it to the industry average, and comment. Compute the net income percentage.

compute the following ratio, compare it to the industry average, and comment. Compute the long term debt to equity ratio.

compute the following ratio, compare it to the industry average, and comment. Compute the interest coverage.

compute the following ratio, compare it to the industry average, and comment. Compute the ROA.

compute the following ratio, compare it to the industry average, and comment. Compute the ROE.

James Trading Corporation

Balance Sheet

December 31, 20XX

James Trading Corporation

Income Statement

December 31, 20XX

Industry Average Ratios

Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 31,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 31,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows:

Brandlin’s incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31.

1. a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency payable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars.

2. a-2. Assuming that the purchased parts became a part of the cost of goods sold in 2017, what is the impact on 2017 net income?

3. a-3. What is the impact on 2018 net income?

4. a-4. What is the impact on net income over the two accounting periods?

5. b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for these transactions in U.S. dollars.

6. b-2. Assuming that the purchased parts became a part of the cost of goods sold in 2017, what is the impact on net income in 2017 and in 2018?

7. b-3. What is the impact on net income over the two accounting periods?

Randy Inc. produces and sells tablets. The company incurred the following costs for the May:

Required:

Determine each of the following:

During the first month of operations ended May 31, Big Sky Creations Company produced 55,500 designer cowboy boots, of which 51,350 were sold. Operating data for the month are summarized as follows:

During June, Big Sky Creations produced 47,200 designer cowboy boots and sold 51,350 cowboy boots. Operating data for June are summarized as follows:

46. At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. The cost of the beginning inventory, $28,650, consisted of $22,400 of material costs and $6,250 of conversion costs. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. Costs added in the current month consisted of $229,600 of materials costs and $540,500 of conversion costs. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

A. $2.00; $4.50.

B. $1.82; $4.45.

C. $2.05; $4.60.

D. $2.05; $4.45.

E. $2.25; $4.65.

Exercise 19-5 Absorption costing and variable costing income statements LO P2

Rey Company’s single product sells at a price of $231 per unit. Data for its single product for its first year of operations follow.

1. Prepare an income statement for the year using absorption costing
2. Prepare an income statement for the year using variable costing.

It takes two materials to produce our widgets, Material X and Material Y. All of Material X is added at the beginning of processing, and all of Material Y is added at the 30% point in processing. At the beginning of March, there were 8000 units in Work in Process, 20% complete as to processing (Conversion). During March, there were 30000 units started into the process. At the end of March, there were 5000 units in Work in Process, 70% complete as to processing, Our Company uses the FIFO method of process costing. Prepare an equivalent units chart for the month of March

In April, we started 40000 units and completed 39000 units. The ending Work in process for April was 10% complete as to processing. Prepare an equivalent units chart for April.

During a review of financial statements, an accountant decides to emphasize a matter in the review report. Which of the following is an example of a matter that the accountant would most likely want to emphasize?

Question 4 options:

A) The entity has had significant tax expenses as a result of a new tax law.

B) Other entities in the same industry have recently changed from LIFO to FIFO.

C) The IRS has notified the entity that it intends to audit income tax returns for prior years.

D) The entity has had significant transactions with related parties.

Problem 10-4A Sell or process LO A1

Harold Manufacturing produces denim clothing. This year, it produced 5,120 denim jackets at a manufacturing cost of $42.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets.

1. Jackets can be sold to a secondhand clothing shop for $8.00 each.
2. Jackets can be disassembled at a cost of $31,300 and sold to a recycler for $11.00 each.
3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,120 jackets into only 2,980 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,800, but the jackets can then be sold for their regular price of $45.00 each.

Required:
1. Calculate the incremental income.

Required information Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 45,000 $ 41,000 Work in process 9,200 19,700 Finished goods 61,000 33,900 Activities and information for May Raw materials purchases (paid with cash) 170,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 17,000 Indirect labor 46,000 Other overhead costs 103,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 55 % Exercise 15-7 Cost flows in a job order costing system LO P1, P2, P3, P4 Compute the following amounts for the month of May using T-accounts. Cost of direct materials used. Cost of direct labor used. Cost of goods manufactured. Cost of goods sold.* Gross profit. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead.

1. Question 1:
   
   • Proficient-level:
     • Identify and describe the three basic forms of business organizations.
     • What are the advantages and disadvantages of each form of ownership?
2. Question 2:
   
   • Proficient-level:
     • Identify the primary objectives of every business.
     • What are the four basic financial statements that measure the primary objectives of every business?
     • Describe what information each statement presents and which of the primary objective(s) can be met through the information presented on the statement.
3. Question 3:
   
   • Proficient-level:
     • Identify the framework for the entire accounting process and describe its components and how they fit together to form this framework.
4. Question 4:
   
   • Proficient-level:
     • To allow the accounting process to run smoothly, accountants must rely on a set of underlying concepts or assumptions. Identify and describe each of the five concepts or assumptions.
5. Question 5:
   
   • Proficient-level:
     • Many accounting transactions will apply to one or more of the financial statements. In the case of the balance sheet, multiple account types can be affected. For each of the following items, provide an example of a transaction that would have the following effects on the items in a firm's financial statements. Provide five correct responses:
       • Increase an asset; decrease some other asset.
       • Increase an asset; increase a liability.
       • Decrease retained earnings; decrease an asset.
       • Increase an asset; increase retained earnings.
       • Decrease an asset; decrease a liability.
       • Increase a liability; decrease retained earnings.
6. Question 6:
   
   • Proficient-level:
     • Consider this scenario. James Stevens was taking an accounting course at State University. Also, he was helping companies find accounting systems that would fit their information needs. He advised one of his clients to acquire a software computer package that could record business transactions and prepare financial statements. The licensing agreement with the software company specified that the basic charge for one site was USD 4,000 and that USD 1,000 must be paid for each additional site where the software was used. James was pleased that his recommendation to acquire the software was followed. However, he was upset that management wanted him to install the software at eight other sites in the company and did not intend to pay the extra USD 8,000 due the software company. A member of management stated, "The software company will never know the difference and, besides, everyone else seems to be pirating software. If they do find out, we will pay the extra fee at that time. Our expenses are high enough without paying these unnecessary costs." James believed he might lose this client if he did not do as management instructed. Discuss whether you believe this is an ethical violation.

Suppose Torche Corporation has the following results related to cash flows for 2018:

Net Income of $8,500,000

Decrease in Accounts Payable of $400,000

Increase in Accounts Receivable of $800,000

Increase in Debt of $100,000

Depreciation Expenses of $1,600,000

Purchases of Property, Plant, & Equipment of $5,400,000

Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.

What is the Net Cash Flow?

Please specify your answer in the same units as the statement of cash flows.